New Delhi, March 27 (IANS) Out of Gross Market borrowing of Rs 14.13 lakh crore projected in the Union budget for FY 2024-25, the government has decided to borrow Rs 7.50 lakh crore (53.08 per cent) in the first half (H1) of the year (April-Sept) through dated securities, the Finance Ministry said on Wednesday.
As much Rs 12,000 crore of this amount is proposed to be raised through the issuance of Sovereign Green Bonds (SGrBs). It has also been decided to introduce a new dated security of 15-year tenor based on market feedback and in line with global market practices.
The Finance Ministry said that the borrowing programme has been finalised in consultation with the Reserve Bank of India.
The gross market borrowing of Rs 7.50 lakh crore shall be completed through 26 weekly auctions. The market borrowing will be spread over 3, 5, 7, 10, 15, 30, 40 and 50-year securities.
The share of borrowing (including SGrBs) under different maturities will be: 3-year (4.80 per cent), 5-year (9.60 per cent), 7-year (8.80 per cent), 10-year (25.60 per cent), 15-year (13.87 per cent), 30-year (8.93 per cent), 40-year (19.47 per cent) and 50-year (8.93 per cent).
The government will continue to carry out the switching of securities to smoothen the redemption profile.
The government will continue to reserve the right to exercise the greenshoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notifications.
Weekly borrowing through issuance of Treasury Bills in the first quarter (Q1) of FY 2024-25 is expected to be Rs 27,000 crore for the first seven auctions and Rs 22,000 crore for the subsequent six auctions with net borrowing of Rs (-)3,000 crore during the quarter.
There will be weekly issuance of Rs 12,000 crore under 91 DTBs, Rs 7,000 crore under 182 DTBs and Rs 8,000 crore under 364 DTBs in the first seven auctions and weekly issuance of Rs 10,000 crore under 91 DTBs, Rs 5,000 crore under 182 DTBs and Rs 7,000 crore under 364 DTBs in subsequent six auctions to be conducted during the quarter.
To take care of temporary mismatches in Government accounts, the Reserve Bank of India has fixed the Ways and Mean Advances (WMA) limit for H1 of FY 2024-25 at Rs 1.50 lakh crore.
–IANS
sps/dan
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
